Article 1953 C.c.Q.: Criteria for Setting the Rent

Where the court has an application before it for the fixing or adjustment of rent, it takes into consideration the standards prescribed by regulation. The rent fixed by the court is in force for the term of the renewed lease or for such term, not in excess of 12 months, as it determines. If the court grants an increase of rent, it may spread the payment of the arrears over a period not exceeding the term of the renewed lease.

Civil Code of Québec, art. 1953 C.c.Q.

What this article means

Article 1953 frames what the tribunal does when it receives an application to set or adjust the rent. The TAL (Tribunal administratif du logement) doesn't set the rent arbitrarily: it applies the criteria set out in the regulations, which start from a base percentage tied to inflation and add, where applicable, the increase in taxes and insurance above that percentage, major work and new services.

The rent set by the TAL applies for the same length as the renewed lease, or for a period the TAL determines, but no longer than 12 months. This rule keeps a single rent-setting from applying over very long stretches without review.

If the TAL grants a rent increase, it can also spread out the payment of any arrears over a period no longer than the term of the renewed lease. This protects the tenant from too harsh a retroactive increase.

What it means for you

If you are a tenant

The TAL applies a regulatory formula: a base percentage tied to inflation, plus items specific to the building. To contest effectively, you either have to show that the expenses the landlord is claiming are inflated, or point to factors that justify a lower rent: defects in the dwelling, needed work that wasn't done, a reduction in services.

If a retroactive increase is granted, ask the TAL to spread out the payment of the arrears to avoid a financial shock. The TAL has the power to do this over the term of the renewed lease.

If you are a landlord

Your file has to document precisely the items the regulation retains: municipal and school taxes, insurance premiums, major work, new services. The more rigorous your documentation, the closer the granted increase will be to what you asked for.

The TAL doesn't look at "market rent" but at real costs. A strategy built on comparing your building with others in the area is generally ineffective before the TAL.

Related articles

• Article 1941 C.c.Q.: Automatic Lease Renewal
• Article 1942 C.c.Q.: Notice of Modification to the Lease
• Article 1945 C.c.Q.: Tenant's Deadline to Respond to a Notice of Modification
• Article 1947 C.c.Q.: Having the Rent Set by the Tribunal
• Article 1950 C.c.Q.: New Tenant: Right to Have the Rent Set
• Article 1955 C.c.Q.: New Building Under 5 Years Old: Clause F
• Article 1946 C.c.Q.: Tenant's Right to End the Lease When No Notice of Modification Was Received
• Article 1896 C.c.Q.: Notice of the lowest rent in the past 12 months
• Article 1906 C.c.Q.: Rent Adjustment Clauses Without Effect
• Article 1938 C.c.Q.: Right to Stay for a Spouse, a Relative, or After a Death